Oct. 14: Asian session
EUR/USD opened with a small gap and rose to $1.3565, though it’s still below Friday’s high at $1.3580. GBP/USD edged up to $1.5988. USD/JPY opened with a gap down at 98.22 after closing at 98.54 on Friday. USD/CHF opened with a gap down at 0.9090 after closing above 0.9100 on Friday. US dollar fell as talks between President Barack Obama and House Republicans hit an impasse and US senators from both parties struggled to draft an accord that averts a US default. Euro gained before a report due today at 09:00 GMT is expected to show industrial production in the region rebounded in August. The Eurogroup finance ministers will meet today in Luxembourg.
AUD/USD opened with more than 40-pip gap down, but then rose back to the Friday’s close in the $0.9470 area. Data over the weekend showed China trade surplus came significantly below expectations because of the drop in exports. China September CPI came at 3.1% y/y (forecast: 2.8%). Australia August home loans dropped by 3.9% m/m vs. the expected 2.5% contraction. NZD/USD rose to the upper border of recent weeks’ trading range at $0.8350, closing the morning bearish gap. New Zealand September HPI came at 2.6% m/m. USD/CAD opened with a gap up at 1.0360, but then slid by 10 pips lower. Canadian and the US banks are closed in observance of Thanksgiving Day.